TOPS Managed Risk Balanced ETF Portfolio Class 1 (0P0000RYU8)

Overview

The fund is a sophisticated investment vehicle that adopts a fund-of-funds structure, primarily targeting exchange-traded funds (ETFs) to allocate at least 80% of its assets. It aims to navigate the complex market landscape by utilizing exchange-traded futures contracts as a strategic tool to hedge against market risk and temper return volatility. This strategy is designed to offer investors a diversified portfolio that spans across a broad spectrum of asset classes, including government and corporate fixed income securities, equities (common and preferred stocks), real estate investment trusts (REITS), and natural resource-related securities. By integrating a diverse range of assets, the fund seeks to optimize return potential while mitigating risk, making it an attractive option for investors looking to balance their investment portfolios.

Products and Services

• Exchange-Traded Funds (ETFs)

  The core of the fund's investment strategy involves allocating a significant portion of its assets to a variety of ETFs. These ETFs are carefully selected to cover a wide range of asset classes, providing the fund with a diversified exposure to the global financial markets. By investing in ETFs, the fund leverages the inherent benefits of ETFs, such as liquidity, cost efficiency, and the ability to track specific indices or sectors closely.

• Exchange-Traded Futures Contracts

  To complement its investment in ETFs, the fund employs exchange-traded futures contracts as a risk management tool. These futures contracts are used to hedge against potential market downturns and to reduce the volatility of the fund’s returns. This strategic use of futures contracts allows the fund to maintain a more stable performance, even in turbulent market conditions.

• Fixed Income Securities

  The fund diversifies its portfolio by including both government and corporate fixed income securities. By investing in fixed income securities, the fund aims to generate steady income streams and provide a stable foundation for the portfolio. This asset class is particularly valued for its potential to offer predictable returns and reduce overall portfolio risk.

• Equities

  Equities, including common and preferred stocks, form an essential part of the fund's investment strategy. By allocating a portion of its assets to the stock market, the fund seeks to capitalize on the growth potential of various companies and industries. This exposure to equities allows the fund to target higher returns, albeit with a higher risk profile compared to fixed income investments.

• Real Estate Investment Trusts (REITs)

  The inclusion of REITs in the fund's portfolio provides exposure to the real estate sector, offering potential for income generation and capital appreciation. Investing in REITs allows the fund to participate in the returns of properties and real estate developments without the need for direct property ownership, adding another layer of diversification to the investment mix.

• Natural Resource-Related Securities

  Natural resource-related securities are included to give the fund exposure to commodities and the natural resource sector. These investments can serve as a hedge against inflation and provide a unique growth opportunity, as the performance of these assets can be influenced by factors different from traditional financial instruments.